Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
November 13, 2020 07:40 AM

VW increases spending on electric, self-driving cars

Staff and wire reports
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    BERLIN -- Volkswagen Group is boosting spending on technologies for electric and self driving cars, while increasing production of EVs in its German home market.

    Investments in battery-powered vehicles, autonomous driving and related future technologies will rise to about 73 billion euros ($86 billion), or half the company's 150-billion euro budget through 2025, VW said in a statement.

    That's up from 60 billion euros a year ago, or 40 percent of investments planned at the time.

    The investment is part of VW Group's new five-year planning cycle, approved by the supervisory board on Friday.

    The spending increase is based on the expectation that the global economy will grow moderately over the next five years, VW said.

    The investment envisages production of about 26 million full-electric cars in Europe, China and the U.S. by 2030.

    Some 19 million of these will be based on the automaker's Modular Electric Drive Toolkit (MEB), with most of the remaining seven million to use the high-performance PPE platform.

    VW said it estimates production of around seven million hybrid vehicles over the same period.

    Under the plan presented on Friday, VW is doubling its planned spending on digitalization to 27 billion euros, as it seeks to develop a seamless, software-based vehicle operating system.

    This includes spending on the group's Car.Software organization launched earlier this year. The goal is to build a proprietary software stack, which will be deployed in Audi’s Artemis project to develop an advanced, self-driving electric vehicle by 2024.

    The company's own share in software will increase to 60 percent from 10 percent, VW said.

    In addition, a large share of the funds earmarked for digitalization will be invested in the mission-critical fields of artificial intelligence, autonomous driving and digitalization of significant business processes, the automaker said.

    Jefferies analyst Philippe Houchois said while the overall investment budget had remained unchanged, VW's priorities had seen a "meaningful re-allocation to software and digitization and a continued priority on Germany."

    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.
    EV production

    VW will also invest in producing EVs and battery cells for electric cars in Germany.

    Together with its Swedish joint venture partner Northvolt, the automaker will build a cell production facility in Salzgitter that will start operation in 2024.

    VW's commercial vehicles division will produce the VW ID Buzz electric minivan in Hanover, along with three full-electric midsize SUVs for other group brands.

    VW brand's plant in Emden will add production of the Aero full-electric midsize sedan in addition to the ID4 crossover.

    The automaker's home plant in Wolfsburg will add an SUV targeting the European market from 2024. VW did not say if this model will be an EV.

    Production of the VW Passat midsize car, currently built in Emden, will be moved to Bratislava, Slovakia, starting in 2023. 

    The Passat will be built in Bratislava with its sister model, the Skoda Superb, whose production will shift there from Skoda's Kvasiny plant to free capacity for increasing production of the Kodiaq and Karoq SUVs.

    Reuters and Bloomberg contributed to this report

    RECOMMENDED FOR YOU
    Russians reluctantly embrace Chinese cars after Western brands depart
    Recommended for You
    Moskvich car 2022
    Russians reluctantly embrace Chinese cars after Western brands depart
    Dacia Sandero with new front grille 2023
    Dacia, MG gain from French demand for low-cost cars
    Smart #1 11.jpg
    Smart dealers optimistic about switch to agency direct-sales model
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us